| WASHINGTON, July 24
WASHINGTON, July 24 The U.S. Securities and
Exchange Commission said on Thursday it had charged Morgan
Stanley with misleading investors about two mortgage-backed
securities it issued before the 2008 financial crisis, and that
the bank would pay $275 million to settle the case, according to
a press release.
The SEC found Morgan Stanley had not given investors in the
securities, which were called Morgan Stanley ABS Capital I Inc.
Trust 2007-NC4 and Morgan Capital I Inc. Trust 2007-HE7, the
correct information about how many of the mortgages they
contained were delinquent, the release said.
A lawyer for Morgan Stanley did not immediately respond to a
request for comment.
(Reporting by Sarah N. Lynch; Editing by James Dalgleish)